Mission-Related Investment Guidelines and Process

General Eligibility:

The purpose of the investment must be to further one or more aspects of the Foundation’s mission of advancing the health of the people of Wisconsin by supporting medical education and/orhealth initiatives. It should be an investment that would not have been made but for the relationship between the investment and the accomplishment of the Foundation’s exempt activities.

The investment is intended to provide a positive social benefit while generating market rates of return and contributing to the Foundation’s long-term financial stability and growth. It must meet applicable prudent investor standards just like more conventional investments.

Prudent Investor Standard:

Must manage and invest funds in good faith and with the care an ordinarily prudent investor in a like position would exercise under similar circumstances.

May incur only costs that are appropriate and reasonable in relation to the assets, the purposes of the institution, and the skills available to the institution.

Shall make a reasonable effort to verify facts relevant to the management and investment of funds.

Investment decisions about an individual asset must be made not in isolation but rather in the context of the institution’s portfolio of investments as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the investment and to the institution.

There must be no attempt to influence legislation or other political intervention associated with the investment.

The investment must be at “arms length” meaning it is conducted openly and fairly.

There must be no inurement or private benefit as a result of the investment. Specifically, no assets may be invested directly or indirectly with any disqualified persons, their family members or entities controlled by a disqualified person. Disqualified persons include but are not limited to the following:

A voting member of the Foundation Board;

A person with responsibility to implement the Foundation’s decisions;

An officer of the Foundation;

Persons with a material financial interest in a provider-sponsored organization;

A substantial contributor to the Foundation.

Proper investment paperwork and due diligence must be done to review the who, when, where, how and how much related to any potential investment.

Prefer the target company have employees working within the state of Wisconsin.

Prefer an investment made in conjunction with an organized funding round.

Prefer projects that have involved physicians, residents or medical students.

Guidelines for Reviewing Specific Opportunities:

Does this product/service address an important/significant health or health care related problem relevant to the people of Wisconsin?

What are the limitations/barriers/competitors?

Is there a market for the product/service? What is the market potential relative to the investment capital needed to address it?

Do the founders, entrepreneurs or management team possess the skill or relevant experience or background to execute the proposed business plan and strategy?

Is there a plan to progress the target company to the next stage of development for additional financing?

On a quarterly basis, any applications received will be forwarded to the Grant Committee for review to consider if the applicant meets the primary evaluation consideration of advancing the mission of the Foundation.

Applicants recommended by the Grant Committee will be forwarded to the Finance Committee for a complete evaluation. Recommendations from the Finance Committee will be considered by the Foundation Board of Directors for final approval.